Analysis On The Economic Responsibility Audit Of G Insurance Company J Branch

Insurance companies make profits by taking risks,therefore,their operational risks far exceed those of other financial services sectors.Preventing and minimizing major risks within the insurance industry directly affects our country’s financial security and social stability.The implementation of economic responsibility audits on senior managers of insurance companies was initially proposed in 2006 by the China Insurance Regulatory Commission.On September 2,2010,the Commission stipulated the implementation of the audit on senior managers in Administrative Measures for the Audit of Directors and Senior Managers of Insurance Companies.The China Insurance Regulatory Commission further elaborated the standard of internal audit of insurance companies in Internal Audit Work Specification for Insurance Institutions on December 7,2015.All in all,the insurance industry has high risks,so its internal audit work requirements are more stringent,and there are more contents to be considered in the implementation.Therefore,the government has specially formulated a series of relevant normative documents for the internal audit of the insurance industry.This thesis mainly adopts the method of literature research,comparative analysis and case study.Firstly,it collects and classifies relevant domestic and international literature through literature analysis,and systematically expounds the meaning,characteristics,functions,goals and contents of economic responsibility auditing.Secondly,the comparative analysis method and case study method are used to conduct in-depth analysis of the issues raised in the economic responsibility audit work of G insurance company J province branch.The whole process of economic responsibility audit work is analyzed and the defect in audit is summarized in following sequences.The inadequate depth and breadth of economic responsibility audit work fails to expose problems of internal auditing thoroughly;the auditing process is not comprehensive enough to define the responsibilities beard by leading officials;the audit process isn’t sufficient enough to expose problems;the outdated information system and unorganized massive data is difficult to examine;the insufficiency of audit results application fails to achieve the economic responsibility audit goal.The research shows that the reasons for the large number of defects in the economic responsibility audit work of G insurance company J province branch involve many aspects.Firstly,the resources of economic responsibility audit are limited.Secondly,the evaluation standards for economic responsibility audit are not well maintained.Thirdly,the information sharing among various departments is insufficient.Fourthly,the management is unaware of the importance of economic responsibility audit.Last but not least,relevant rectification plans are not fully implemented.Based on above issues,this thesis puts forward reasonable suggestions as follows: strengthen the team building of the audit department by intensive training for current auditors,recruitment of experienced auditors and implementation of the personnel plans and performance incentive for auditors;improve the economic responsibility audit evaluation and clarify the definition of responsibilities for problems found in economic responsibility audits;set up audit liaisons to improve the coordination mechanism for economic responsibility audit work;improve rules and regulations to increase the awareness of economic responsibility audit work among leaders at all levels;develop the audit system by optimizing the functions of the economic responsibility audit information system;last but not the least,improve the audit result announcement system in order to demonstrate the authority of economic responsibility audit and increase audit rectification efforts.The quality and efficiency of the economic responsibility audit work of G Insurance Company J branch can only be improved by multilevel decomposition of audit targets and progressive improvement,and hence improve the company’s sustainable development ability,and effectively reduce operational risks.